Indian exporters are asking the government and the Reserve Bank of India (RBI) for urgent relief measures as new US tariffs are expected to hit exports hard.
Exporters say they need support similar to what was given during the Covid-19 pandemic, such as:
- Relaxation in loan repayments
- Government-backed loans and guarantees
- Interest subsidies
- Government support for employees’ PF and ESIC contributions
Kirit Bhansali, chairman of the Gems & Jewellery Export Promotion Council, said, “This is like an earthquake for exporters. Many workers will be affected, and relief is essential.” He also asked banks to allow delayed loan repayments since payments from buyers are likely to be delayed.
The Federation of Indian Export Organisations (Fieo) has requested:
- A one-year moratorium (pause) on loan repayments, both principal and interest
- An automatic 30% increase in credit limits to help with working capital
Fieo president S.C. Ralhan warned that exporters could face shutdowns and job losses. “The government wants us to sell domestically, but how can we sell goods meant for the US in India?” he asked.
The Apparel Export Promotion Council (AEPC) has also approached various ministries with demands. They want:
- Lower interest rates, as India’s rates (8–12%) are much higher than China or Malaysia (around 3%)
- Revival of the interest subsidy scheme and export credit facility for five years
- Concessional corporate tax rate of 15% for new companies
- Support to expand garment units through a textile upgradation scheme
- Warehouses overseas to store goods
- Government to cover employers’ PF and ESIC contributions for apparel workers from August 2025 to March 2026
Additionally, AEPC and Fieo have proposed skill development programs for export workers.
While the RBI is discussing possible relief measures, the government is cautious about offering large-scale financial aid immediately. Instead, it is exploring whether domestic retailers and overseas buyers can help. The Centre also believes reforms such as a GST cut could boost local demand and provide some relief to exporters.
